1. Field of the Invention
The invention generally relates to a system and method for integrating the consideration of component substitution rules within an advanced planning system for considering established planning objectives to compute an optimal production plan. More specifically, the present invention relates to computer implemented decision support systems for determining a production plan of feasible production starts, where the plan integrates the consideration of material substitutions with production constraints, and operational objectives. General methodologies within this field of study include advanced planning systems, optimization and heuristic based algorithms, constraint based programming, and simulation.
2. Description of Related Art
The ability to substitute one part for another in a manufacturing process is an aspect of production planning that is common to many different types of industry supply-chains. For example, in the steel industry higher grade steels can be substituted for lower grade steels (and vice versa). Similarly, in the semiconductor manufacturing industry faster processors can be substituted for slower processors (referred to as down-binning) at various points in the manufacturing process. Accounting for these types of opportunities helps in determining optimal supply-chain planning decisions. Basic methods for handling these simple substitutions have been described in U.S. Pat. No. 5,971,585, which is incorporated herein by reference.
To determine an optimal supply chain plan, it aids to consider the potential substitution opportunities since this may dramatically alter the optimal plan. For example, the ability to substitute one part for another can mean that excess unwanted inventory can be utilized rather than planning new production starts of another part. This results in more efficient utilization of capacity resources and ultimately impacts supply-chain metrics such as inventory position, on-time-delivery, and capacity utilization.